Bill Text: TX HB2633 | 2013-2014 | 83rd Legislature | Introduced

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Bill Title: Relating to the compensation of an owner of the surface estate in land for damages associated with mineral exploration and production operations.

Sponsorship: Bipartisan Bill

Status: (Introduced - Dead) 2013-04-17 - Left pending in committee [HB2633 Detail]

Download: Texas-2013-HB2633-Introduced.html

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83R10702 JAM-D
By: Stephenson H.B. No. 2633

A BILL TO BE ENTITLED
AN ACT
relating to the compensation of an owner of the surface estate in
land for damages associated with mineral exploration and production
operations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 3, Natural Resources Code, is
amended by adding Chapter 93 to read as follows:
CHAPTER 93. SURFACE OWNER COMPENSATION
Sec. 93.001. DEFINITIONS. In this chapter:
(1) "Agricultural use" has the meaning assigned by
Section 23.51, Tax Code.
(2) "Mineral developer" means a person who acquires a
mineral estate or a mineral lease for the purpose of extracting or
using minerals from a tract of land for purposes other than
agricultural use.
(3) "Mineral estate" means an estate in or ownership
of all or part of the minerals underlying a tract of land.
(4) "Mineral exploration and production operations"
means the following activities to the extent they require entry on
the surface of a tract of land:
(A) mineral geophysical and seismographical
exploration activities; and
(B) mineral drilling, production, and completion
operations.
(5) "Surface estate" means an estate in or ownership
of the surface of a tract of land.
(6) "Surface owner" means a person who holds record
title to the surface of a tract of land.
Sec. 93.002. APPLICABILITY. (a) This chapter applies only
to land used for agricultural use.
(b) A surface owner is entitled to damages as provided by
this subchapter regardless of whether:
(1) the surface estate of the land has been severed
from the mineral estate; or
(2) the surface owner is the person who executed the
instrument that gave the mineral developer the right to conduct
mineral exploration and production operations on the land.
Sec. 93.003. REMEDIES CUMULATIVE. The remedies provided by
this chapter are in addition to any other remedies provided by law.
Sec. 93.004. RIGHT TO PAYMENT FOR DAMAGES. (a) A mineral
developer shall pay each surface owner an amount equal to the amount
of actual damages sustained by the surface owner for the following,
to the extent the damages are caused by mineral exploration and
production operations on the surface owner's land:
(1) loss of income derived from agricultural use of
the land;
(2) reduction in value of the land;
(3) reduction in value of improvements to the land;
(4) loss of access to the surface of the land; and
(5) loss of the use of the surface of the land.
(b) The computation of the amount of compensation for
damages described by Subsection (a) to which the surface owner is
entitled must take into account:
(1) the amount of land affected by mineral exploration
and production operations;
(2) crop losses or livestock losses;
(3) surface damage;
(4) rental losses; and
(5) the length of the period during which the loss or
reduction in value occurs.
(c) Except as provided by Subsection (d), a surface owner
may be paid the compensation for the amount of the damages in annual
installments or in a lump-sum payment.
(d) A surface owner shall be paid the compensation for the
loss of income derived from agricultural use of the land in annual
installments.
SECTION 2. The change in law made by this Act applies only
to liability for damage to the surface of land caused by the use of
the surface for mineral exploration and production operations on or
after the effective date of this Act. Liability for damage to the
surface of land caused by the use of the surface for mineral
exploration and production operations before the effective date of
this Act is governed by the law in effect on the date the damage was
caused, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.